Business tax and regulatory reporting obligations add to the drain on management time, while a more investigative approach by the tax authorities can result in harsher penalties for non-compliance. Put all these factors together and the tax burden on your business can be much larger than you may like. We assist with initial planning, preparation of submissions, deal with post-submission and dispute issues with tax authorities

Tax services offered include but are not limited to:

1. Tax Planning:

You must pay taxes, but there’s no law that says “you gotta leave a tip”.

Careful tax planning is essential in helping our clients avoid costly errors in tax reporting. We provide expert advice to assist them in understanding tax law changes and how such laws affect their business.

We review their statements monthly and quarterly to make quarterly business estimates. We then do an in-depth study during the last quarter of the year to allow for any additional tax planning prior to the end of the year to help minimize their tax bill.

 

2. Tax Preparation:

Business Income Tax(Corporate tax):

• Prepare the company’s accounts with the Ministry of Finance for the year ending December 31^st(profit and loss declaration, budget declaration and financial report )
• Prepare and/or review the yearly tax returns filing for corporations, partnerships, individuals, properties, non-profit organization’s and other entities
• Advise on fiscal benefits coming from registration in APIEX (Investment and Export Promotion Agency ) and petroleum law (LNG Projects)
• Advise on Expenses not accepted by the Ministry of Finance and how to manage them.

Personal Income Tax :

Increasing personal wealth requires the effective use of tax legislation, combined with a professional approach to communication and negotiation with the tax authorities. ACB Mozambique works hard to establish an effective working relationship with the tax authorities to increase our understanding of what is, and isn’t, possible for personal tax planning. We use this knowledge to make the most of opportunities to reduce an individual’s tax burden and plan for the future. As a global network of firms, ACB Mozambique can also offer clients access to tax professionals in a number of jurisdictions. Our services focus on:

• Estate tax planning
• Review and prepare Monthly declarations for taxes on salaries and wages.
• Review and prepare the declaration of the yearly reconciliation for tax on salaries and wages.(Tax reconciliations )
• correspondence with tax authorities.
• Follow-ups on all issues and documentation related to employees, newly registered or resigned.

Indirect Tax:

Indirect taxes such as value added tax (VAT), sales tax, customs duties and excise, can represent up to a third of a company’s annual turnover. The magnitude of these tax collections is rarely highlighted in annual reports. Yet indirect tax raises significant risks for all businesses. Poor indirect tax management can squeeze cash flow, allow the over or underpayment of tax, and attract stiff penalties for non-compliance. As companies expand into new markets they invariably encounter cross-jurisdictional issues involving indirect taxes, increasing and complicating their tax risks. We offer a range of VAT and customs and excise services, ranging from helping our clients identify opportunities and plan liabilities to liaising with the VAT office. We also provide a range of VAT reviews to help our clients minimize their VAT-related expenditures. Our Indirect Tax services include:

•  Apply needed audit on all accounts involved in VAT declarations
• Review and prepare monthly  VAT declarations
• Prepare the compliance with VAT regulations and follow up the implementation of new VAT rules and procedures
• VAT planning
• Advice on VAT opportunities and pitfalls
• Advice on optimising VAT benefits
• Processing VAT refund claims
• Liaising with the VAT office including objections and appeals
• VAT reviews
• Diagnostic/analytical reviews
• Compliance reviews
• Savings reviews
• Customs and excise planning
• Assistance in claiming duties overpaid
• Assistance in obtaining fiscal benefits
• Conducting reviews of customs tariff listings and of duties paid.

With Holding tax (WHT )and double taxation  

1. Withholding tax

Any non-resident entity carrying out economic activities in Mozambique, without being registered as a taxpayer, is liable, in general, to a final and definitive 20% WHT that is applied to all income earned.

Since WHT has an exemption in sectors :

1. Telecommunications and international transport
2. Electricity infrastructures in the rural zones under the public projects
3. Maritime vessels freight for fishing and coasting activities
4. Agricultural projects

and % varies with double taxation agreements between Mozambique and Botswana,India ,Italy,Macau,, Mauritius , Portugal, South Africa , United Arab Emirates and Vietnam .

(Detail for the above  will be provided to the client upon demand )

we offer the following services :

1. Review the service agreement between resident and non resident entities and advise
2. Review and prepare WHT declarations
3. In case of double taxation we fill out double tax forms and follow up the process until it get tax clearance form ministry of finance in Mozambique

National Institute of Social Security (INSS) :

ACB Mozambique accepts, declares and undertakes to provide timely and accurate services regarding the National Social Security Fund (In Mozambique they call it: National Institute of Social Security “INSS”) for the company, while ensuring compliance with all applicable laws, regulations and policies in force in Mozambique .

• Review and prepare declarations of subscriptions for INSS
• Review and prepare the yearly reconciliation for INSS
• Follow up on all issues and documentations related to employees newly registered or resigned
• Attend local audit initiated by INSS authorities
• Keep your concerned departments updated and familiar with all new laws or procedures announced by INSS and the government

All taxes are to be prepared within their corresponding deadlines set by the government.

3. Tax Consultancy:

Our strong relations with tax and government authorities allow us to easily provide our clients with an accurate answer about any given inquiry.